SFC freezes client accounts

The Securities and Futures Commission has issued a restriction notice to freeze broker's client accounts linked to suspected market manipulation.

A restriction notice was issued to Shenwan Hongyuan Securities, prohibiting it from dealing with or processing certain assets held in four trading accounts related to suspected market manipulation in the shares of a company listed in Hong Kong. This was the third time the SFC has issued a restriction notice to brokers within the span of a month.

The restriction notice prohibits Shenwan Hongyuan Securities disposing of or dealing with, assisting and counselling or procuring another person to dispose of or deal with certain securities in the trading accounts without the SFC's prior written consent. This includes engaging in securities transactions; processing withdrawals or transfers of the securities and cash; disposing of or dealing with the securities on the instructions of any authorized persons of the accounts or any person acting on their behalf.

Shenwan Hongyuan Securities is also required to notify the SFC if they receive any of these instructions.

The SFC's investigation is ongoing.